4 ms·

> This means at comparable margins, So what about in reality, where Tesla makes over double the margins of GM or Ford[0] or on the extreme end, 8x Toyota's pro

• screye 4y ago
  Tesla has a similar operating margins as BMW or Mercedes, which makes sense because they only sell premium cars. Once Tesla starts selling Prius & Corolla competitors, their margins should go down accordingly.
• MrMan 4y ago
  I am no MBA but how do mass market auto makers defend margins like these in the presence of robust competition? Porsche is a brand built basically on top of VW infrastructure and they painfully win their high margins from expensive add-ons to cars which are (mostly) shared platforms with VW and Audi. Can Tesla carve out a similar niche? If you look at value, Teslas are not at the top of the list in terms of quality or the percentage by which their batteries empirically under/over-perform their range ratings. Consumers are slowly coming to learn how to compare EVs and no matter how well things go for Tesla I am a bit skeptical that their profit margins will survive fully intact.